News & Articles on Burma-Friday 17 June, 2011

News & Articles on Burma
Friday 17 June, 2011
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KIO Reject Govt Ceasefire Plan as 'Insincere'
AIPMC calls for urgent peace talks in Myanmar and real action by ASEAN
China should be peacemaker to address armed-conflict in Burma
Refugees sheltered in Buddhist monastery
Prisoners from Insein Prison are taken to unknown location
EU team heads to Myanmar to test political waters
US urges Burma to end hostilities
US Vows to Continue Pressing for Burma CoI
Indian FM to visit Burma on Monday
Burma, from a German Perspective
Fall in Gold Price Fails to Spur Demand
KIO destroys 10 bridges and capture and arrest six
New Tax Law to Increase Burden on Private Sector
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KIO Reject Govt Ceasefire Plan as 'Insincere'
By SAW YAN NAING Friday, June 17, 2011

Representatives of the Kachin Independence Organization (KIO) held talks in Laiza on Friday with a government delegation, but rejected Naypyidaw's plan for a ceasefire agreement, said La Nan, the Kachin rebels' joint-secretary.

Speaking to The Irrawaddy on Friday following the negotiations, La Nan said that former Minister of Communications, Posts and Telegraphs Thein Zaw flew from Naypyidaw to Myitkyina, the capital of Kachin State, on Wednesday and held talks two days ago and held a meeting with members of the “Kachin Consultative Committee,” which is a steering committee of ethnic Kachins with loyalties to the former military junta.

After Wednesday's meeting, La Nan said, Thein Zaw sent four delegates led by Sin Wa to Laiza, the headquarters of the KIO, for ceasefire negotiations.

La Nan said that the delegates told the KIA that Naypyidaw wanted to call a ceasefire and end hostilities against the KIO's military wing, the Kachin Independence Army (KIA). They also said the government had ordered its front-line troops to stop firing on Kachin rebels two days ago.

However, according to La Nan, the KIO leaders refused to agree to the ceasefire after the delegates failed to produce any form of documentation, such as a letter from Naypyidaw, to confirm the government's intentions.

“We asked them for documents or letters with the signatures of officials in Naypyidaw. But, they had none,” said the KIO joint-secretary. “We told them that we would only consider a ceasefire if they could produce evidence of their sincerity.”

Despite the government delegation's claims, sources in Kachin State have told The Irrawaddy that intense clashes and exchanges of gunfire have been ongoing between government forces and the KIA.

On Friday, fighting broke out in Mohnyin Township, according to KIA sources who said that the KIA's Battalion 5 engaged government forces, killing five soldiers and wounding two. They did not report any casualties on the KIA side.
Hostilities were also reported in Tanai (also known as Danai) in northwestern Kachin State on Thursday night.

The Burmese authorities have deployed tight security at government offices in Myitkyina while passengers travelling on the Myitkyina-Bhamo road were strictly questioned and thoroughly searched at government checkpoints, local sources said.

Local government officials in the state capital summoned members of the Union Solidarity and Development Party (USDP), and told them to be on standby for army recruitment if the conflict escalates, Kachin sources said.

Meanwhile, local residents have reported that government troops have used villagers as human shields on maneuvers in Namh Kam Township in northern Shan State.

Government troops sealed two villages—Nam Lim Pa in Min Khawng Township and Tung Hung in Taw Htum Yang Township—and banned the villagers from leaving. According to Seng Aung, a KIA source in Laiza, near the China-Burma border, the government forces are employing this tactic as they intend to systematically use the villagers as human shields.

Residents of the two villages have dug tunnels and bunkers as hiding places in case major hostilities break out, he added.

Seng Aung told The Irrawaddy that some villagers who fled to Laiza said that others who tried to flee were prevented from doing so by government soldiers. Some made it by road to Laiza after lying to soldiers at checkpoints, telling them that they were farmers on their way to their fields, but headed instead to the relative safety of Laiza.

On Friday, four Kachin villagers in Man Kang village in Nam Kham Township were arrested and tortured by government troops after being suspected of having KIA loyalties, said Seng Aung.

Residents of Maijayang village in Momauk Township also reported that schools, markets and NGO training centers were closed, and that the village was on high alert fearing further attacks. Some villagers had reportedly sold off their livestock cheaply and fled to the Chinese border to seek sanctuary.

“The village is very quiet. Everyone has packed a bag and are ready to flee by day or by night,” said La Aung, a Maijayang resident.

The KIO claims that some 10,000 Kachins have become war refugees in the nine days since conflict broke out on June 9. Some have taken refuge emergency shelters in Laiza and other locations near the Sino-Burmese border, while others have gone to other areas to stay with relatives.
Some 200 have crossed into China, the KIO says. http://www.irrawaddy.org/article.php?art_id=21516
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ASEAN Inter-Parliamentary Myanmar Caucus Press Statement
AIPMC calls for urgent peace talks in Myanmar and real action by ASEAN

Jakarta (June 17, 2011) – The ASEAN Inter-Parliamentary Myanmar Caucus – AIPMC
strongly condemns the decision by the Myanmar government to dispatch heavily armed
troops into Kachin State and the concomitant outbreak of fighting, which brings an end to
seventeen years of ceasefire between the government and the Kachin Independence Army
(KIA).

- We are deeply concerned about a return to war between the Myanmar army and the
KIA, says Eva Kusuma Sundari, president of the AIPMC. We call for an immediate end
to sending troops into Kachin areas and urgent peace talks between the parties.

The war in Kachin State demonstrates that the new Myanmar government, elected in a
sham election in November 2010, has not changed its ways and will continue to rule by
force rather than seek a power-sharing agreement with ethnic nationalities. There is no
progress towards democracy in the country as long as the new parliament remains unable
to act on behalf of the population, and the new government is already failing in its
responsibility to protect the people.

Recent fighting has caused internal displacement and a wave of refugees across the
border to China. Almost one thousand people have already reached the Kachin town of
Mai Jay Yang along the Kachin-China border, while another 150 people who moved into
China were forced to return. Many others had their cell phones confiscated by Chinese
police.

AIPMC calls on China to stop these forced repatriations and to provide protection to
Kachin refugees fleeing fighting. The UN High Commissioner for Refugees-UNHCR
and other international bodies must be granted access to the border areas of China and
Myanmar for the protection of civilians AND HUMANTIARIAN RELIEF.

The outbreak of fighting in Kachin State comes in addition to ongoing conflicts in Karen
and Mon areas in eastern and southern border areas with Thailand and represents an
expansion of the conflict area in Myanmar up to Kachin State and the Myanmar-China
border. Recent events are also a warning to Myanmar’s neighbours, including Thailand,
to reconsider any plans to repatriate refugees from Myanmar.

ASEAN leaders urgently need to put the border crisis in Myanmar on top of the ASEAN
agenda in order to seek an end to the conflicts in the region, and dialogue and national
reconciliation between the government, ethnic nationalities and other opposition groups.
Most importantly, Indonesian foreign minister Marty Natalegawa, in his capacity as
chairman of ASEAN, and other ASEAN leaders must now reject Myanmar’s request to
chair ASEAN in 2014.

For further comment/ media interviews with AIPMC Parliamentarians do contact Aticha
Wongwian at +66 838863494 begin_of_the_skype_highlighting +66 838863494 end_of_the_skype_highlighting (Thailand), Edmund Teoh +60123750974 begin_of_the_skype_highlighting +60123750974 end_of_the_skype_highlighting (Malaysia), Agung Putri
Astrid +62 81514006416 begin_of_the_skype_highlighting +62 81514006416 end_of_the_skype_highlighting (Indonesia, Singapore, Cambodia, Philippines)
END.
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China should be peacemaker to address armed-conflict in Burma
Fri, 2011-06-17 01:25 — editor
Article
By - Zin Linn

The armed conflicts in Kachin State could cause greater insecurity along Sino-Burma border unless the President Thein Sein government takes accountability to find out a peaceful settlement. According to some analyst, agreement among pro-democracy ethnic armed groups has strengthened since Thein Sein government troops showed aggression last week.

According to Kachin News Group (KNG), the Kachin Independence Army’s 8th Battalion of Brigade 4, led by Major Lashi Naw Din hit back to the Burmese Army offensive by capturing six Burmese soldiers including a captain in Northern Shan State this afternoon. The government soldiers were encircled and under arrest without a single shot being fired by the KIA soldiers.

On the other hand, the aggressive war launched by the Burmese government causes tragic consequences for the Kachin people along the Sino-Burma border. Over 10,000 Kachin refugees run off to the China border since the beginning of civil war last three days between the Kachin Independence Army (KIA) and Burmese government soldiers in Kachin State, the Kachin News Group said.

KIO’s civil administration officer Salang Doi Pyi Sa said, “According to yesterday’s list, there are 2,291 refugees who arrived from Burmese government’s territories. There are over 300 in Ura Bum, 4,238 in Loije, over 2,000 in Man Win and over 300 in Maijayang.”

As soon as the conflict broke out this week, KIO opened six temporary refugee-camps in Laiza headquarters. China has not allowed the refugees to cross into its area. Most refugees are inhabitants of villages under government-controlled areas along Myitkyina-Manmaw (Bhamo) road, Manmaw-Loije road and Manmaw-Kai Htik-Nam Hkam-Muse road, said Doi Pyi Sa.

Meanwhile, Chinese Foreign Ministry spokesman Hong Lei told at a regular news conference in Beijing that China was giving humanitarian help to residents from Myanmar (Burma) who had fled, but he gave no details on their number or condition, Reuters News said.

"We are paying attention to the situation in Myanmar near the border area. We urge the two parties to exercise restraint and prevent the escalation of the situation, and resolve the relevant disputes through peaceful negotiations," Hong Lei said.

In the two KIO towns of Laiza and Maijayang, refugees are being provided food, sanitation and health facilities by KIO. No local and international refugee agency has arrived in the border so far, KNG reported. As said by the refugees, they escaped to the Sino-Burma border fearing of being recruited as porters by Burmese soldiers rather than the fighting.

This armed conflict between KIA and government troops is not a misunderstanding. KIA has expected the government offensive since it turned down the Border Guard Force plan of the Burmese government last year. Besides, China is building two major dams as part of a hydroelectric power plant in the armed conflict zone. As China is the key protector of Burma in the UN Security Council’s meeting, Burmese government has decided to defend the China’s investment in the Kachin region.

There have been reports that hundreds of Burmese government troops have been deploying throughout the northern Kachin State in order to protect major dams as part of a hydroelectric power plant run by the state-owned China Datang Corporation. Government has also a plan to drive out KIA forces after they refused to leave a strategic post near the hydro-power project.

Warfare started after the KIA turned down a deadline claimed by the Burmese Army to follow a complete withdrawal from the KIA’s Bum Sen stronghold in Sang Gang by Saturday, June 11th, at 12 p.m.

And a remarkable fact is that the Burmese army's well-planned offensive comes just weeks after the new President Thein Sein’s visit to China. It was also his first official state visit to reinforce his namesake civilian government's close tie with Beijing.

As a result, there is an interesting question for some observers. The question: “Did Burmese government receive a green light from neighboring China to attack Kachin Independence Army? “

If not, China must take responsibility as peacemaker addressing the armed conflict at its doorstep.

- Asian Tribune - http://www.asiantribune.com/news/2011/06/16/china-should-be-peacemaker-address-armed-conflict-burma-0
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Refugees sheltered in Buddhist monastery
Friday, 17 June 2011 09:37 KNG

Refugees by the hundreds from Katsu Yang village located between Waingmaw Township and Laiza headquarters of the Kachin Independence Organization (KIO) have sought refuge in a Buddhist monastery in Waingmaw Township, said residents.

Skirmishes between the Kachin Independence Army (KIA) and Burmese troops occurred from 3 a.m. till 5 a.m. Over 300 refugees from Ga Ra Yang, Gangdau Yang near the battle field fled to Waingmaw Township.

“A lot of war refugees have been sheltered in Waingmaw Monastery,” said a resident of Waingmaw.

Refugees who recently arrived in one of six camps in the KIO capital Laiza.
Earlier the KIO said there are more than 10,000 refugees who fled to the China border in the eight-day civil war between the KIA and Burmese troops.

The KIA’s list compiled yesterday night stated that there are 2,291 refugees in Laiza, more than 300 at KIA brigade 3 based Ura Bum-Hpyin Shan village, 4,238 refugees in Loije, over 2,000 in Manwin village and over 300 refugees in Maijayang, according to Salang Kaba Doi Pyi Sa KIO civil administration department officer.

The Burmese Army tightened security in all cities in Kachin State after the war started.

“At this moment all traffic police are carrying guns, all road, gates and bridges are manned by soldiers” said residents of Myitkyina, capital of Kachin State.

Residents are not going out after 6 p.m. because the areas are teeming with Burmese soldiers carrying guns. They are patrolling around the quarter. The whole city is enveloped in silence.

The Border Guard Force (BGF) transformed from the former New Democratic Army-Kachin NDA-K led by Zahkung Ting Ying is forcing local youths to join the army in Waingmaw Township. Ten persons from each quarter are to be enlisted after the civil war started between KIA and Burmese troops, said quarter chief from the township.

Burmese troops are recruiting young people for the people’s militia, said the source. http://www.kachinnews.com/news/1968-refugees-sheltered-in-buddhist-monastery.html
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Prisoners from Insein Prison are taken to unknown location
Friday, 17 June 2011 18:39 Kyaw Kha

Chiang Mai (Mizzima) – More than 150 prisoners in Insein Prison in Rangoon were transported to an unknown location by authorities on Thursday.

Burmese prisoners walk out from the main gate of Insein Prison in Rangoon in this file photo. Photo: AFP

Burmese prisoners walk out from the main gate of Insein Prison in Rangoon in this file photo. Photo: AFP
Some observers said the government might be planning to use the prisoners as porters in its offensive against the Kachin Independence Army (KIA) in Kachin State.

Prison authorities selected the prisoners during a line-up on Thursday morning. Most of those selected were long-term prisoners. They were taken away by two trucks and guarded by armed police guards.

‘The trucks were heading east of Insein Township. There were no prison staff on the trucks, and the trucks were not prison vehicles’, said a source.

An analyst who is also an opposition political activist said, ‘According to my experience, if the authorities want them to go to work camps outside the prison, they take their bags and food. But, if they are to be used as porters, they don’t take anything. They go empty-handed’.

Normally, when prisoners are sent to work camps, prison authorities use vehicles owned by the Directorate of Prison Administration.

A person who recently visited a political prisoner in Myitkyina Prison in Kachin State said that on June 9, an estimated 100 prisoners were taken from the prison. A former official in the New Democratic Army-Kachin who lives in Myitkyina said that the Burmese government is using prisoners in its offensive against the KIA. http://www.mizzima.com/news/prisoner-watch/5441-prisoners-from-insein-prison-are-taken-to-unknown-location.html
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Jun 17, 2011
EU team heads to Myanmar to test political waters

BRUSSELS - A HIGH-LEVEL European Union team is heading to Myanmar for exploratory talks with the country's new authorities, a senior EU diplomat said on Friday.

'This is a first stage aimed at listening to the new Myanmar authorities to gauge their mindset,' the diplomat said. 'All partners concerned by Myanmar have sent, or will be sending, missions to test the new authorities.'

Robert Cooper, special adviser to EU foreign policy chief Catherine Ashton, and EU special envoy for Burma-Myanmar Piero Fassino, could be in Myanmar as early as this weekend, another EU source said.

Myanmar's military junta handed over power in March to a nominally civilian government. That and the release last year of democracy icon Aung San Suu Kyi after the first election in 20 years sparked cautious hopes of gradual reform in Myanmar, ruled by the military for nearly half a century.

In April, European governments extended by a year a set of trade and financial sanctions on Myanmar - but opened the door to the Myanmar foreign minister as an inducement to accelerate change.

The United Nations this week announced that Secretary General Ban Ki-moon would soon name a full-time special envoy to Myanmar to encourage the government on the reform path. -- AFP http://www.straitstimes.com/BreakingNews/SEAsia/Story/STIStory_680898.html
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US urges Burma to end hostilities

The United States has urged Burma to cease hostilities in northern ethnic minority regions after deadly clashes triggered an exodus of refugees into neighboring China.

State Department spokeswoman Kelly McKellogg says the United States is "monitoring the situation carefully" in Burma.

"We call on the Burmese authorities to cease any such hostilities and begin a dialogue with opposition and ethnic minority groups towards national reconciliation," she told reporters.

Fierce fighting began a week ago near a large hydropower project being built in northern Kachin State to provide power to China, and has since spread to northern areas of neighboring Shan State.

The rebel Kachin Independence Army says thousands of people crossed into China during the fighting. It has appealed for mediation from Beijing, one of the closest allies of Burma's military-backed government.

President Barack Obama's administration in 2009 opened a dialogue with Burma , concluding that efforts to isolate the regime had failed. But the United States has repeatedly voiced disappointment with progress on democracy, human rights and other key concerns.
http://www.radioaustralianews.net.au/stories/201106/3246416.htm?desktop
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US Vows to Continue Pressing for Burma CoI
By HTET AUNG Friday, June 17, 2011

The US Ambassador to the UN Human Rights Council (HRC) said that the US will continue working with its allies at the UN to seek the establishment of a UN Commission of Inquiry (CoI) on Burma, according to a statement issued on Wednesday by the US Mission to Geneva.

“Burma holds over 2,000 political prisoners and routinely violates the rights of its citizens, including ethnic minority populations,” said Eileen Chamberlain Donahoe, the US ambassador to the UN Human Rights Council, in her speech to the 17th Session of the HRC.

“The United States remains committed to seeking accountability for human rights violations that have occurred in Burma by working to establish an international Commission of Inquiry through close consultations with our friends, allies, and other partners at the United Nations,” she said.

A Burmese exile human rights group viewed the US ambassador's statement as an encouraging sign in their efforts to achieve the CoI on Burma. However, Burma’s new government rejected the recommendation for a CoI, which was first made during previous HRC sessions by the UN Special Human Rights Rapporteur to Burma, Tomas Ojea Qunitana, for possible war crimes and crimes against humanity.

“The Burmese government's representative rejected the establishment of the CoI in the sessions of the HRC,” said Aung Myo Min, director of Thailand-based Human Rights Education Institute of Burma (HREIB), who attended the Universal Periodic Review session in Geneva in June. “Also, unlike the bloc's previous policy stands on Burma, the EU countries are not united in their supports for the CoI.”

“Therefore, the US's role to initiate the CoI establishment within the UN is very important because we are now targeting to get a resolution for the CoI in the upcoming UN General Assembly,” he said.

The HREIB also saw the US commitment to a CoI as progress on the part of the Obama Administration, which first endorsed the establishment of the CoI in August 2010, but didn't have any specific plan on how to realize the commission, said Aung Myo Min.

Tun Shin, the new government's Attorney General, who attended the UPR session in Geneva, said to the council: “There were 190 recommendations on Myanmar [Burma], out of which 74 were supported, with 46 recommendations taken back to the capital for consideration and 70 recommendations which it was felt infringed on the sovereign rights of Myanmar.”

The 70 recommendations that the new government rejected included the establishment of the CoI for Burma, said Aung Myo Min.

He said that there are three possible channels to form the CoI for Burma—the HRC, the UN General Assembly and the UN Security Council (UNSC). The UNSC was able to pass a resolution to form a CoI for the human rights violations in Darfur, Sudan in 2004, and the HRC took a historic step in passing a recent resolution for a CoI on Libya.

Burmese exile activists believe that a resolution for the establishment of the CoI on Burma at the UN General Assembly is a possible option, while they believe that China will definitely block such an action in the UNSC against the new Burmese government, which is now its “strategic ally” in the region.

There have so far been 16 countries which officially supported the establishment of the CoI on Burma. They are: The Czech Republic, Australia, the United Kingdom, Slovakia, Canada, the US, Hungary, New Zealand, the Netherlands, France, Ireland, Lithuania, Estonia, Latvia, Belgium and Denmark. http://www.irrawaddy.org/article.php?art_id=21510
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Indian FM to visit Burma on Monday
Friday, 17 June 2011 19:46 Ko Pauk

New Delhi (Mizzima) – Indian Foreign Minister S.M. Krishna will visit Burma on Monday, according to the Indian Embassy in Rangoon. A senior official from the embassy said that details of the visit were not yet known.

News circulating in Burma also speculated that Burmese President Thein Sein will visit India soon.

National Coalition Government of Union of Burma (NCGUB) Information Minister Dr. Tint Swe said that the visit may be in preparation of the Burmese president’s visit.

‘Not visiting India after paying a visit to China would be unforgivable from the point of view of India’, he said.

‘The Voice’ weekly journal quoted the president’s adviser, Dr. Nay Zin Latt, as saying Thein Sein would visit India soon.

Dr. Tint Swe said that India was working on its ‘Look East’ foreign policy and its main objectives in Burma was the border issue, trade and the insurgency on the border.

‘This matter became more complicated recently’, he said. ‘War broke out in Kachin State and it could have an impact on Indian insurgents operating in Naga Hills and Sagaing Division in Burma which are adjacent to Kachin State. So this matter will be a headache for the Indian government. I assume that the Indian FM would certainly try hard to resolve this issue by alternative ways’, he said.

Minister Krishna visited Naypyitaw in December 2009; the Indian international spy agency, the Research and Analysis Wing (RAW), chief S.K. Tripathi visited Naypyitaw on April 2011.

Relations between Indo-Burma top level leaders since 2006

- Indian President Dr. A.P.J. Abdul Kalam visited Burma in March 2006.
- SPDC Vice Chairman General Maung Aye visited India in April 2008.
- Prime Minister General Thein Sein visited India in November 2008.
- Indian Vice President Shri Hermit Ansari visited Burma in February 2009.
- SPDC Chairman Senior-General Than Shwe visited India in July 2010.
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Burma, from a German Perspective
Friday, June 17, 2011

As a leading member of the European Union, Germany is known among Burmese opposition groups for its soft stance towards the Burmese government and is assumed to have played a key role in relaxing EU sanctions against Burma last April. Since Burma installed a civilian government in March, there have been increasing exchanges between Germany and the new administration in Naypyidaw. Recently, Burma's state-run newspapers gave extensive coverage to meetings between Burmese senior government officials and German delegations, most of which were headed by Germany's ambassador to Burma, Julius Georg Luy.

In this exclusive interview with Irrawaddy reporter Ba Kaung, Ambassador Luy, who has been posted in Rangoon since September 2008, discusses EU sanctions on Burma, as well as the role of German companies alleged to be indirectly involved in Burma's suspicious weapon programs. He also offers his opinion of pro-democracy leader Aung San Suu Kyi.

Question: How would you describe your diplomatic experience in Burma and your relationship with government officials there?

Answer: For a diplomat present-day Myanmar is an interesting and professionally challenging post. The historical, political, social and economic complexities of this multiethnic country are extraordinary and hard to decipher and understand. In the last few weeks we took up the first contacts with the new government.

Q: How has the bilateral relationship evolved since Dr. Richard von Weizsacker, the former acting president of the Federal Republic of Germany, visited Burma in February of 1986?

A: Since 1986 there has not been much of an evolution. As a reaction to the political events in Myanmar unfolding from 1988 on, EU member states reduced their relations with Myanmar considerably and introduced sanctions. It is in the hand of Myanmar’s Government to improve relations through substantial reforms.

Q: What is Germany's position on last year's election and the new government in Naypyidaw?

A: Elections in Myanmar took place under very difficult conditions. The democratic opposition and parties representing ethnic minorities were massively discriminated against. The whole process was neither free, fair nor inclusive.

However, the President’s inaugural speech of March 30 contained a number of positive statements and perspectives. Yet, at the end of the day, the government will be judged by its deeds, not its words.

Q: When Burma went to the polls on Nov. 7, there were major clashes on the Thai-Burmese border between the Burmese army and a faction of a former cease-fire group. A similar situation also occurred in Shan State more recently, and fears of renewed conflict are rising in other areas. What can the outside world do to help Burma resolve its ethnic tensions?

A: There is no simple recipe to solve the ethnic conflicts which persisted from historical Burma into present-day Myanmar. They are a challenge which at least equals and is connected to the democratic challenge. Ethnic minorities need a proper and adequate participation in the political decision-making of Myanmar. Some hopes rely on the new regional and state structures, which still have to prove their actual political impact. The clue for a solution lies within Myanmar herself, and a proper process of national reconciliation would—for all sides involved—be a good and wise way to go.

Q: On May 30, you led a delegation of German foundations meeting with Burmese government ministers and the Speaker of the Union Parliament in Naypyidaw. Burma's state-run newspapers subsequently reported that Germany agreed to assist the country's social welfare programs. Does this mean that Germany is going to resume official development cooperation with the new government in Burma?

A: It is the common position upheld by all EU member states, including Germany, that the time to resume fully fledged official development cooperation has not come yet. This is very costly for Myanmar and has tangible effects: According to UN statistics, Myanmar annually receives US $6 of economic assistance per capita, whereas neighboring Laos receives $60!

Q: In a phone call with Aung San Suu Kyi in March, German Chancellor Angela Merkel called for the release of political prisoners in Burma and on June 2, she urged the Association of Southeast Asian Nations (Asean) to openly discuss Burma's human rights issues before allowing the country to take the bloc's chairmanship. Have you ever raised these issues with Burmese government officials in the country or made any public statement about them?

A: The release of political prisoners is an important political priority of the European Union and the German government. It has been and is being raised in our meetings with all our partners in Myanmar. These and other human rights questions are central issues taken up by the German government’s Human Rights Commissioner during his talks in Myanmar last week.

Q: There have been reports that you have actively argued in closed meetings that the EU should lift its sanctions against Burma. At the same time, Chancellor Merkel is urging the Burmese government to release political prisoners. Which do you think should occur first—the release of prisoners, or the withdrawal of sanctions?

A: As I said before, the release of political prisoners is an important political priority of the German government. With regard to the second part of your question, I would like to state once more: the time to lift more sanctions has not come yet. I regret however that public discussions about how to support the Myanmar people often underestimate the wide range of instruments available in the diplomatic and foreign policy toolbox. If you read the EU’s common position you will find that it does not only contain restrictions, but also encouragement, too.

Q: Leaked US diplomatic cables show that German officials, along with those of Spain and Italy, have expressed doubts about the effectiveness of EU sanctions against Burma. What role did Germany play in the EU's decision to ease sanctions in April?

A: As a matter of principle I don’t comment on leaked confidential cables. However, Germany has substantially supported the work on the most recent decision of the Foreign Affairs Council of the EU on the common position. It is a position supported unequivocally by all EU member states.

Q: The EU has imposed an arms embargo on Burma, as well as a limited ban on trade and investment, but this hasn't prevented German weapons manufacturer Fritz Werner from continuing to do business with the Burmese military. How does this work within the framework of EU sanctions? Can you tell us more about the nature and extent of these sanctions, and why you think they are too stringent?

A: To my best knowledge, the company Fritz Werner has no arms-related business in Myanmar. Anything else would not only violate the EU’s common position and be punishable accordingly, but harm as well the business and reputation of any European company considerably.

Q: Last year Al Jazeera reported that the German firm Deckel Maho Gildemeister (DMG) sent engineers to Burma to assist with the installation of specialized imported machinery in Burmese military-owned factories. Is it true, as the report claims, that German diplomats in Rangoon visited two of those factories in 2008 and 2009?

A: DMG has delivered education-related turning machines to Myanmar. The repeated visits of experts and officials give us no indication that these machines are not being used in accordance with their assigned purpose.

Q: During President Thein Sein's recent visit to China, Burma and China said that they had established a strategic relationship. What are Germany's views on the regional and international implications of China's growing influence in Burma?

A: Myanmar seems to strive for balanced relations with the region. This includes her relations with China as well. However, trade and economic relations between Myanmar and China have increased considerably over the last few years.

Q: What do you think about Burma's relationship with North Korea, and reports that Naypyidaw has nuclear ambitions?

A: Any report on developments anywhere in the world not in line with the international obligations arising out of the Non Proliferation Treaty is taken very seriously by the international community.

Q: We have heard that the German embassy in Rangoon believes that Aung San Suu Kyi should not be singled out for meetings with EU diplomats, since such an action might offend representatives of other opposition parties. What are your views on Suu Kyi's status in relation to that of leaders of parties represented in the Parliament in Naypyidaw?

A: Germany—as like other EU member states—respects the decision of political parties to participate in last year’s elections as well as the decision of other political parties not to take part. We maintain contacts with a wide range of political actors, as well as with members of the opposition, be they inside or outside Myanmar’s new institutions. Amongst them Daw Aung San Suu Kyi is an outstanding personality giving an impressive example of self-discipline, modesty, sacrifice and an untiring search for peaceful solutions. She is and will be an inspiration for many people and has her important place in Myanmar’s political development.

Copyright © 2008 Irrawaddy Publishing Group | www.irrawaddy.org http://www.irrawaddy.org/article.php?art_id=21512
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Fall in Gold Price Fails to Spur Demand
By NAYEE LIN LATT Friday, June 17, 2011

Despite a recent decline in the price of gold, demand for the precious metal remains weak in Burma, while the number of those seeking to sell has increased, according to sources.

One kyat-thar (16 g) of solid gold cost 675,100 kyat (US $865) in Rangoon last month. On Thursday, the price was 656,000 kyat ($841)—a drop of 19,000 kyat ($24), or nearly three percent.

“Currently, we don't have many customers in our shop, despite the fact that gold prices have gone down,” said the owner of a gold shop on Rangoon's Shwebontha Street. “Right now, there are more people looking to sell than to buy. This is unusual, because normally people would try to avoid selling at a loss.”

A sales manager from another shop said that one reason for this recent trend could be that many people are selling off their gold because they are in need of cash in hand due to a shortage of money in circulation.

An official from the Myanmar Gold Entrepreneurs Association (MGEA) suggested that this could also be the reason for sluggish sales, saying that demand for gold has not recovered despite falling prices because many potential customers are more interested in holding onto their cash than in buying gold.

The official also denied that the MGEA, which was founded in 2002 by the Union of Myanmar Federation of Chambers of Commerce and Industry and authorities from the then military regime to maintain gold-price stability, has had any role in directing recent trends.

“The MGEA neither adjusts nor manipulates gold prices in the market. There is just no demand,” said the official.

A gold dealer told The Irrawaddy that he thought lower prices would bring back buyers, but so far that hasn't happened.

“Usually, whenever prices go up, customers will sell off their gold and the market will function. Likewise, when the price goes down, demand rises and the market becomes normal. But that is not the case now,” explained the dealer.

A retired professor from the Rangoon Institute of Economics said that besides the shortage of Burmese banknotes in circulation, another factor fueling the sale of gold could be the recent weakness of the US dollar. He said that some dollar-holders may be selling off their gold because they don't want to exchange their dollars to kyat at an unfavorable rate.

“A market needs to function continuously. If selling or buying stops for any reason, there will definitely be a problem. The kyat, the main currency used inside Burma, is now going up in value, while foreign currencies are falling. So it is like people are exchanging their goods for money in order to meet their day-to-day needs,” said the professor.

Currently, one US dollar is equivalent to 805 kyat in Burma's domestic currency exchange market.
http://www.irrawaddy.org/article.php?art_id=21513
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KIO destroys 10 bridges and capture and arrest six
Thursday, 16 June 2011 21:30 Phanida

Chiang Mai (Mizzima) – The Kachin Independence Organization (KIO) said that they have destroyed 10 bridges so far to prevent heavy weapons moving closer to their front lines, captured three government soldiers including a lieutenant and arrested three civilians.

‘We have destroyed about 10 bridges but we destroyed only the bridges which were used by government troops in their offensives. This is a normal military tactic’, KIO Lieutenant Colonel Yaw Htone told Mizzima.

The KIO has destroyed wooden bridges, concrete bridges and suspension bridges in Phakant, Moemouk and Waimaw townships in Kachin State.

KIO central committee member La Nan said that the KIO arrested Lieutenant Thiha Naing a.k.a. Thet Naing Aung; Private Tun Zaw and Private Phyo Wei Aung of the Light Infantry Battalion No. 342 at near Pan Wah village in Namtu Township, Shan State, on Thursday.

Three civilians found with the soldiers were also arrested and detained, he said.

The bridges destroyed are the Nam Phat Kha stream suspension bridge connecting the Tapein hydroelectric dam in Moemauk Township; Mayanchaung bridge in Waimaw; Mali stream bridge on Waimaw-Laiza highway; Lanna stream bridge on Waimaw-Kampaiti highway; Namsar stream bridge on Tamoenye-Monsi highway in Shan State’ bridge on Phankant-Karmine-Lonekhinhighway; a bridge connecting Hopin and Namma villages on the Phakant-Gyikha highway; Namsam stream concrete bridge connecting Warazwap-Bangkok villages; the Namsamkha wooden bridge near Namsam village between Warazwap and Bangkok villages; and the Maykha River suspension bridge, 59 miles south of Chibwe Township.

Military analysts said that some earlier destruction of bridges had only limited results.

KIO and local residents said that there was a small clash between KIA and government troops about two miles from Manhsi village in Moemauk Township on Wednesday night.

Local residents said that the Burmese authorities are giving military training to convicts in Bhamo Township where minor clashes have occured. Also firefighters, policemen and people’s militia members are being provided military training in Myitkyina, the capital city of Kachin State.

Bridges destroyed
1 Nam Phat Kha suspension bridge connecting Tapein hydroelectric dams in Moemauk Township
2 Mayan Stream bridge in Waimaw Township
3 Mali stream bridge on Waimaw-Laiza highway
4 Lanna stream bridge on Waimaw-Kampaiti highway
5 Namsar stream bridge on Tarmonye-Monsi road in Shan State
6 Bridge connecting Karmi and Lonekhin in Phakant Township
7 Bridge between Hopin and Nammon village on Phakant-Gwikhar road
8 Namsan stream concrete bridge between Warazwap and Bangkok villages
9 Namsankha stream wooden bridge near Namsan village between Warazwap and Bangkok villages
10 Maykha River suspension bridge, 59 miles south of Chibwe Town
http://www.mizzima.com/special/kachin-battle-report/5435-kio-destroys-ten-bridges-and-arrest-six.html
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New Tax Law to Increase Burden on Private Sector
By KO HTWE Friday, June 17, 2011

Changes in Burma's tax laws will add to the burden on private-sector companies and their employees while sparing state-run and military-owned corporations, creating conditions that will increase the risk of future economic problems, according to experts and private entrepreneurs.

The changes, which come into effect next month, are part of an overhaul of tax policy designed to put it in line with Burma's 2008 Constitution, which abolished the Profit Tax Law that previously applied to private-sector companies.

Under the new rules, private companies and their employees who earn more than 30,001 kyat (US $38) annually will now have to pay the same income taxes as public companies. In practice, however, few state- or military-owned companies actually pay these taxes.

Privately owned companies, on the other hand, will be required to file tax returns and provide annual salary statements for each of their employees to local township revenue offices, as part of an effort to improve enforcement of tax laws.

The rate of taxation will also be higher. For example, a company or individual earning 300,000 kyat ($384) a year must now pay 30 percent in income tax, whereas under the Profit Tax Law, they only paid 20 percent.

“It is hard to call this a tax reform,” said Han Tun, a writer who focuses on tax-related issues. He said that it will be especially difficult for small enterprise to meet the new requirements.

Not only the State run newspaper New Light of Myanmar announced the procedure but also respective Township internal revenue department call meeting and urged all taxpayer to filled-in and signed in the file the return of income form and sent it to respective revenue department before June 30.

Observer said taxpayer potentially to pay more tax to the government to cover their loss because Thein Sein center government transferred 19 categories of tax to collect Region and State government.

Entrepreneurs looking forward government to enact appropriate tax for them and thought that they have to pay for tax more than previous year according to restaurant owner from Sagaing.

“I have to pay 40,000 kyats for tax. But this year I have to attach details of my income. Everybody have to pay tax because one year income is exceed than 300,000 kyats ($38.68). So it is likely that government will receive more tax and taxpayer have to pay more income tax,” said Photographer from Kyonpyaw Township from Irrawaddy division.

In the military regime tax have been collect without proper monitoring but now authorities will more concentrate on the tax and strictly enforce tax laws because of changing to democracy said official from Ministry of Finance and Revenue.

“How government arrange our health and education after taxpayer paid their tax? The collect the tax in accordance with democracy and should take responsible in accordance with democracy. So what they said democracy will be in shape,” said Tun Tun, IT shop owner from Rangoon.

“Paying the tax to our country is our duties. But government should decide appropriate tax for taxpayer,” he added.

In 1972, due to government new administration Internal Revenue Department was formed and Income Tax law has been introduce in 1974. In 1976 tax from Company, Co-operative society and state own enterprise are supervise by Income Tax law and the rest have been collect under the Profit Tax Law.

“The form from the internal revenue is very detail not like previous. It seems like they[government] don't got tax from company and more restriction on collection tax. Entrepreneur, who wish to reinvest their profit, reluctant to give their profit as a tax,” said owner of Travel and Tour agency from Bahan Township in Rangoon.

Some entrepreneur negotiated with the official from revenue department to pay the profit tax lower than actually cost are also watching the situation how to deal with the process said business man.

Rangoon based The Voice weekly journal reported top ten tax payer business group that Kanbawza Bank business group paid the highest tax in the financial year 2010- 2011. The other leading groups run by regime's back Tayza of Htoo and Zaw Zaw of Max Myanmar are not listed in the list.

One of the company, who paid tax with foreign currency which is twice than KBZ complain about the news to the official from revenue department replied that the tax they paid in dollar have been change with 6 kyats per dollar.

Burma’s Internal Revenue Department has announced a new law targeting companies for tax on Jan, however, the military-owned Union of Myanmar Economic Holdings Ltd (UMEHL) and several other government enterprises are still exempt from the regulation. http://www.irrawaddy.org/article.php?art_id=21517

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